FAC Explorer

Audit 1640

FY End
2023-05-31
Total Expended
$14.27M
Findings
8
Programs
11
Organization: Graceland University and Subsidiary (IA)
Year: 2023 Accepted: 2023-10-27
Auditor: Rubinbrown LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
863 2023-002 Significant Deficiency - N
864 2023-002 Significant Deficiency - N
865 2023-002 Significant Deficiency - N
866 2023-002 Significant Deficiency - N
577305 2023-002 Significant Deficiency - N
577306 2023-002 Significant Deficiency - N
577307 2023-002 Significant Deficiency - N
577308 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $9.78M Yes 1
84.063 Federal Pell Grant Program $2.01M Yes 1
84.044 Trio_talent Search $447,485 - 0
84.038 Federal Perkins Loan Program $390,438 Yes 0
84.042 Trio_student Support Services $380,667 - 0
84.007 Federal Supplemental Educational Opportunity Grants $296,251 Yes 1
93.264 Nurse Faculty Loan Program (nflp) $287,205 Yes 0
84.033 Federal Work-Study Program $253,866 Yes 0
94.006 Americorps $211,204 - 0
94.002 Retired and Senior Volunteer Program $129,215 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $61,767 Yes 1

Contacts

Name Title Type
DE79ZAF3J4L5 Janice Tiffany Auditee
6417845120 Kaleb Lilly Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Graceland University and Subsidiary's consolidated financial statements include Graceland College Center for Professional Development and Lifelong Learning, Inc. (Center). The schedule of expenditures of federal awards does not include the Center, which is not subject to compliance requirements described in the OMB Compliance Supplement. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Graceland University (the University) under programs of the federal government for the year ended May 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Graceland University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Graceland University.
Title: Federal Student Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. At May 31, 2023, Graceland University had $20,684 outstanding under the Federal Perkins Loan Program (ALN 84.038). The Federal Perkins Loan Program did not include a federal capital contribution or match in the current year. There were no Federal Perkins loans issued during the year. In addition to normal repayments from students, the outstanding loans under the Federal Perkins Loan Program were reduced by approximately $283,000 due to loans that were assigned to the U.S. Department of Education by the University in the year ended May 31, 2023. During the fiscal year ended May 31, 2023, Graceland University issued new loans to students under the Federal Direct Loan Progam (FDLP). The loan program includes subsidized and unsubsidized direct loans, Parent PLUS loans, and PLUS loans for graduate and professional students. The value of loans issued for the FDLP is based on disbursed amounts. The loans amounts issued durign the year are disclosed on the Schedule. Graceland University is responsible only for the performance of certain administrative duties with respect to the federally guaranteed student loan programs and, accordingly, balances and transactions relating to these loan programs are not included in Graceland University's basic consolidated financial statements. Therefore, it is not practicable to determine the balance of loans outstanding to students and former students of Graceland University at May 31, 2023. During the fiscal year ended May 31, 2023, Graceland University was advanced $190,434 by the Department of Health and Human Services (HHS) as a capital advance to establish the Nurse Faculty Loan Program (NFLP) (ALN 93.264) at Graceland University. The amount reported in the Schedule of Expenditures of Federal Awards in the year ended May 31, 2023 includes the capital advances received and the value of new loans issued in the year ended May 31, 2023. At May 31, 2023, the amount of outstanding loans under this program totaled $96,771 and the amount of cash held for this program totaled $115,227, including the institutional capital contribution to the NFLP program.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, the University provided no federal awards to subrecipients.

Finding Details

Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.
Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.
Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.
Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.
Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.
Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.
Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.
Finding 2023-002
Finding 2023-002 - Significant Deficiency, Compliance Federal Award No. 84.007, 84.268, 84.063, 84.379 U.S. Department Of Education Student Financial Aid Cluster - Special Tests and Provisions Criteria: According to the 2022-2023 Federal Student Aid Handbook a College must include the proper inputs into the Return to Title IV (R2T4) calculations when determining the amounts that should be returned to the Department of Education when a student withdraws from the University. Condition: In our nonstatistical sample of 40 students, it was noted for 4 students that the University used improper inputs in the R2T4 calculation resulting in the University retaining more aid than prescribed.Context: For two students the University used an improper period of enrollment start date for the Fall 2022 semester of August 26, 2022 instead of the correct start date of August 29, 2022 which resulted in the University retaining $57 of unsubsidized loans and $166 of Pell grants, respectively, more than the University should have retained had it used the proper date in the calculation. In addition, the University erroneously used the gross loan disbursement instead of the net loan disbursement in the R2T4 calculation for two students. As a result, one student received $7 more in Pell grants than they should have, and the University retained $11 more in unsubsidized loans for the other student than they should have, if the net disbursement had been utilized. Effect: The improper inputs to the R2T4 calculations resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the 4 students in which the exceptions were noted totaled $241. Likely questioned costs were not expected to exceed $1,000. Cause: Graceland University did not have proper processes and related controls in place to ensure that the errors in the inputs to the calculations were properly identified and corrected. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to ensure that the start dates for periods of enrollment and the amounts of loan disbursements are properly included in the R2T4 calculations. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has provided corrective action through correcting the identified errors and adding additional review of the R2T4 calculations.